Kaveri Seed reports poor quarterly performance, stock plunges

Kaveri Seed Company Ltd. reported its results for the quarter ended March 31, 2017 today.

The company's total sales for Q4FY17 came in at Rs 40.3 crore, which represents a 40.6 per cent sequential decline and 1.92 per cent YoY decline.

Its operating loss (EBIT) for the quarter amounted to Rs 33.71 crore.

The company reported net loss of Rs 87.19 crore, as against the net profit of Rs 3.55 crore in the last quarter of the same year.
 
During FY17, the company’s revenue declined 5.4 per cent YoY to Rs 705 crore and its EBITDA during the period dipped 25.6 per cent YoY to Rs 140 crore. Also, the company’s net profit tanked 53.9 per cent YoY to Rs 77.3 crore.


After the poor quarterly performance, the company’s stock plunged around 9 per cent to touch the day's low of Rs 472.85 from previous close of Rs 521.55. The stock closed for the day at Rs 497, down by 4.7 per cent.

Kaveri Seed Company Ltd is a vertically integrated agri-input company based in India. The company focuses on three areas viz. yield optimisation, soil enrichment and crop protection. The products of the company include corn, sunflower, pearl millet, grain sorghum, cotton, rice, tomatoes, okra, chillies and watermelon seeds. The company operates in two segments, viz. seeds and micro-nutrients.